Quick story & staunch Reality...

By
Services for Real Estate Pros with Auto & Home & Life Insurance throughout North Carolina

A young gentlemen was pre-approved.  While a small loan, it is significant for him since it is the very first house he has ever bought.  The closing date is on the back end of November's Ides...

The supporting documentation was collected and the appraisal was ordered, yet over the weekend, he spoke to the Family Attorney.  Mr. Attorney recommended that he shop around.  Alas, the chap was "approved" at a local bank at an interest rate that was about a half percent lower than we quoted.  So, he went that way.

Days later, meaning today, it so happens that the local bank turned him down.  While getting into specifics may be a bad thing, they low-balled a legitamate rate they could offer him and their debt ratio requirements are tighter than an amateur porn star's balloon knot.  (No, you didn't just write that.  Yup, I did.)  They turned him down.

So, we are starting over to an extent.  The appraisal must be re-ordered and now we can actually send the file to Underwriting.

I'm a champion of folks shopping around, just not so late in the game.

The next time you shop, try the Family Attorney.

 

 

Comments (97)

Marney Kirk
Cummings & Co. Realtors - Towson, MD
Towson, Maryland Real Estate

Good call, Jason. And LMAO at the porn star's balloon knot!!!

I have found that to be the case too often when quoted a great rate, suddenly they aren't approved -- quotes aren't committments!!!

Oct 28, 2009 10:13 AM
Erin Newington
(916) 585-3858 - Elk Grove, CA
Elk Grove Realtor

Often times these peeps end up with the biggest liar! Glad he came back to you!

Oct 28, 2009 10:40 AM
Anonymous
Mark

I just had a similar experience but lost the deal completely.  I billed the client for my time (After having worked the deal for 9 months, they pulled out 4 days before closing..thanks to the realtor)  Believe it or not, I actually received a check for 50% of what I billed them for, with an explanation for the reason they felt they only should pay what they paid.

Is anyone charging an application fee or a cancellation fee? If so, what is working?  Iam tired of putting all my time and effort into working with inconsiderate and disloyal people.  Your thoughts?

Oct 28, 2009 10:42 AM
#81
Chris Coley
North American Title Company - Fort Collins, CO
North American Title Company

Jason, Thanks for the entertainment reading your post and all these great comments! I wonder if the attorney wwas on the board of the local bank?

Oct 28, 2009 10:47 AM
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

Interesting metaphors. I'm curious what others you have up your sleeve.

Oct 28, 2009 11:21 AM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Joe - You've highlighted my problem with that field.  Unless they are a Real Estate Attorney, I find little reason why they should be involved in this particular business at all.

Christianne - Nobody's raunchier than I:)

James - Not mine, man.  I'm a leeking...

Lyn - I'm there.  Hopefully that will help to save the day.

Aaron - I'm glad we could introduce you to the balloon knot:)

Greg - In case you haven't already found the answer, here's a clue...

you'll find it the next time you wipe.

Donne - Don't you dare ruin it for Gregory:)

Brian - You're wise to think...

Cheryl - "Forewarned is forearmed with our Buyer Clients."  Those are typically the best type.

Brenda - It's similiar.  With both, you can get screwed.

Gary - I'm not typically a fan.

Bryant - True that. 

 

Oct 28, 2009 12:02 PM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Erica -  That's excellent and not surprising.  You need a good "IN HOUSE" lender;)

Stephanie - Luckily, I'm already nuts.  It just drives me now....

GMS - And I don't blame them.  I blame us.  We are the way they shop.

Team Honeycutt - Very true.  The best 'deal' is the one you can close at.

Mark - If I billed people for time put in and they paid, I would never bitch again.  Those are my thoughts. 

Chris - Perhaps, that's a thought.  Local Banks can come in handy, but don't always fit or flip the bill.

Melissa - Stick around.  If this Mortgage Gig doesn't work out, I'm going George Carlin on everyone's behind;)

 

Oct 28, 2009 12:25 PM
David Monsour
Keller Williams Keystone Realty - Gettysburg, PA
ABR - www.realty-insights.com

I'm all for shopping early on.  I also let them know that the lenders are paying money to run credit and taking time to meet with them and that their time isn't free so to take that into consideration.  Hopefully your buyer realized that he was in good hands the first time.

Oct 28, 2009 12:26 PM
Damon Gettier
Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA
Broker/Owner ABRM, GRI, CDPE

It is awesome how people get such good advice from those NOT in the business.

Oct 28, 2009 12:42 PM
Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy

Shopping around when you are up against the wall isn't always a great idea.  I have had people lose homes and earnest money deposits from things like that... 

Oct 28, 2009 01:02 PM
John Cassels
Sterling Savings Bank - Tacoma, WA
NMLS #197076

This has happened a few time to me this year.  Each time I get someone that tells me they are leaving for the "Bank" I share my previous experiences.  I have had a few reconsider and a few that call back and ask if their loan can still be done.  At least they came back to you and didnt try another "Bank" out there.

Oct 28, 2009 01:40 PM
Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
GRI, e-PRO, Executive Broker, Searcy AR

I hate it when a lender promises the moon and then delivers nothing.  Some of them just don't care.

Oct 28, 2009 02:45 PM
Heather Adkinson
Windermere K-2 Realty LLC www.propertiesinmoseslake.com - Moses Lake, WA
Real Estate Agent - Moses Lake

Well now you've got nothing to do but close the darn thing.

Oct 28, 2009 05:53 PM
Aaron Vaughn, REALTOR© 830-358-0455
eXp Realty - Canyon Lake, TX
My knowledge is your power | eXp Realty

This certainly gives me something to think about. Thank you.

Oct 28, 2009 06:51 PM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

David - That's the type of respect I appreciate and try to bestow on others.

Damon - Isn't it?

Lane - That's a fact.  The shopping process should start long before entering into any Sales Agreement.

John - It does say something when folks come back.  It seems a lot of times that they are embarrassed to do so when the grass isn't quite as green as they previously thought or were told.

Barbara - That's why I only promise the stars;)

Heather - You said it:)

Kyle - If you read the comment thread, you'll have plenty to think about;)

 

Oct 29, 2009 02:02 AM
Russell Lewis
Realty Austin, Austin Texas Real Estate - Austin, TX
Broker,CLHMS,GRI

Aaron aka Kyle, you might want to actually read Jason's post. You made a similar generic comment in this thread earlier...I'm just sayin'

Oct 29, 2009 03:23 AM
The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
Delivering Real Estate Happiness

Jason - You are a poet indeed !  Great story !!!  Keep us posted with the next chapter !!

Nov 01, 2009 01:35 AM
Nyssa Smith
Keller Williams Advantage Realty - State College, PA
REALTOR, State College Area Real Estate

Ugh!  That's so frustrating Jason!  That's why I love working By Referral Only.  First of all when they are referred to me, half the battle is won because they trust the person who is doing the referring, therefore they trust my advice.  Secondly, to maintain that trust clear up to the closing and beyond, I have installed By Referral Only touchpoints.  I have these touchpoints in place throughout the transaction from the initial meeting with them all the way through the closing and beyond.  That way when they get advice from their well meaning "trusted friend, family member, family attorney, etc.", they are not so quick to just jump ship because they know they can trust me and all the advice I give them.  I'm happy to tell you more if you'd like to know more.

Nov 01, 2009 04:14 AM
Nevin Williams
Fairway Independent Mortgage Corporation - Cary, NC
Senior Mortgage Advisor

Jason - I get so tired of sh!$ like that.  Tell your client to send the attorney the bill for the appraisal and ask for a refund of his legal council fees for bad advice.

Nov 01, 2009 12:22 PM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Russell - Good call.  I noticed that as well.  I'm just trying to be polite ... for once;)

Erica -  You do:)

Chris & Stephanie -  Thank you all the way around.  I will hopefully be following up on this near month's end.

Nyssa - I shot you an email.  I look forward to speaking with you.

Nevin -  I only wish, my man.  Believe me, the thought runs through my head like corn through a goose.

Nov 02, 2009 06:06 AM